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Federal Student Loan Refinancing Act

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5/23/2013--Introduced. Federal Student Loan Refinancing Act - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to allow borrowers that received loans under the William D. Ford Federal Direct Loan (DL) or Federal Family Educati...[more]

Sponsor

  • Sen. Kirsten E. Gillibrand [D, NY]

Cosponsors (10)

  • Sen. Mark Begich [D, AK]
  • Sen. Richard Blumenthal [D, CT]
  • Sen. Cory A. Booker [D, NJ]
  • Sen. Sherrod Brown [D, OH]
  • Sen. Claire McCaskill [D, MO]
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Sponsor: Sen  Kirsten Gillibrand (D-NY)

Summary:

  • Would allow borrowers that received loans under the Direct Loan (DL) or Federal Family Education Loan (FFEL) program on or after July 1, 2006, to consolidate those loans as Federal Direct Consolidation Loans.
  • The SecEd would be directed to consolidate DLs, and send a completed loan consolidation application to FFEL borrowers, within 90 days of this Act's enactment. FFEL borrowers would be given six months after their receipt of such application to endorse it and submit it to the Secretary if they wish to consolidate their loans.
  • Interest rate on Federal Direct Consolidation Loans would be set at 4% or, if the weighted average of the interest rates of the loans being consolidated is less than 4%, the lesser of: (1) that weighted average, or (2) an interest rate equal to 0.4% of the principal balance of the consolidation loan at the time of consolidation.
Status:

5/23/2013 - Introduced read twice, and referred to the Committee on Health, Education, Labor and Pensions.